To calculate earnings per share, divide a company’s annual or quarterly profit by the number of shares of stock it has outstanding. Note: If a company has both preferred and common stock ...

Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

Comparing EPS in absolute terms may not have much meaning to investors ... shares outstanding Earnings per share (EPS), a company's profit divided by the amount of common stock it has in ...

Here, “price” means current price per share of a stock, and “earnings” means a ... In other words, the P/E ratio works as sort of a common language through which to evaluate stocks that ...